SNow consider U.S. capacity decisions in the
context of competing with capacity from abroad.

SHistorically, capacity abroad has been very
competitive in the U.S. gasoline market, as demonstrated by gasoline imports
having more than doubled in volume since 1990.As a result, imports have become an
essential source of gasoline supply to the U.S. East Coast, where they met
24% of East Coast (PADD 1) demand in 2003.

SBut will these competitive imports continue
to be available and grow to help meet growing U.S. demand?